- Mid-teens asset growth will continue for ETFs over the coming years, says Goldman Sachs, citing growth in ETF-favoring RIAs, 401(k) rollovers, increasing use of auto-allocation products (robo-advisors), regulatory push into lower-cost products, geographic expansion, and innovation.
- Areas in ETFs with the fastest growth rates and biggest potential include those located outside the U.S., fixed-income - which has only half the share of assets relative to mutual funds as equity ETFs have - and smart beta, which has seen 30% organic growth over the last three years.
- Stocks of interest include: BlackRock (NYSE:BLK), Invesco (NYSE:IVZ), and WisdomTree (NASDAQ:WETF).
- Source: The Reformed Broker